The government is hopeful of meeting a stiff disinvestment target of Rs 72,500 crore for current financial year that could play an important role in maintaining fiscal balance, especially at a time when it has embarked on the path of additional public expenditure to prop up the economy.

Presenting a note on the state of economy, after tabl­ing it before the cabinet, the finance ministry said over Rs 30,000 crore or more than 40 per cent of the annual target, has already been ac­hieved till mid-September.

“We have a stiff disinvestment target this year. Most likely we will achieve it. Already, we have done Rs 30,000 crore,” economic affairs secretary Subhash Garg said.

With more rounds of PSU share sale through ETFs, further stake sale in the specified undertaking of the Unit Trust of India (Suuti) and ONGC-HPCL merger deal yet to go, officials are confident of meeting the target and exceeding it if even strategic sale plan like Air India’s also goes through this year.

Additional mobilisation would be key to hold back any slippage on fiscal deficit that is targeted at 3.2 per cent of the gross domestic product (GDP) in FY18.

The government’s ambitious planned public spending increase on infrastructure and additional capital support to banks could have put pressure on the deficit.

Though the government is sitting comfortable on a deficit and is committed to sticking to the target of 3.2 per cent of GDP, the economic affairs secretary said, a review would be done in December.

In the Union budget, finance minister Arun Jaitley had said the government plans to raise Rs 72,500 crore in 2017-18 by divesting stakes in public sector firms.

Out of the annual target, the government plans to raise Rs 46,500 crore via minority stake sale, Rs 15,000 crore through strategic stake sale and Rs 11,000 crore from the listing of various insurance companies.

The government could garner Rs 40,000 cr­ore from the strategic disinvestment thr­ough the sale of its 51 per cent stake in HPCL to ONGC. The disinvestm­ent target will be achieved using all available and possible methods including public offers, strategic sales and share buybacks by public sector units, officials said, adding that success lies in timing the stake sales with appropriate methods.

The other goldmine the government plans to tap in the current financial year is selling more of its Suuti holdings separately. There are three stocks under Suuti in the second exchange-traded fund (ETF) named Bharat 22. It is one of the key options to raise funds.

The government is banking on ETFs as a vehicle for further disinvestment of shares. It has already cleared Bharat-22 ETF with a diversified portfolio to speed up the disinvestment process. It will hit the market next month.

The exchange-traded funds had raised Rs 8,500 crore by divesting through CPSE exchange-traded fu­nd in the last financial year. The government’s keenness for disinvestment to sell equity stakes in profitable PSUs to raise funds has so far seen some action on this front.